GOP Blocks Small-Business Lending Bill

[Soggy in NOLA]

In the black and white world of the right, one party is always correct and the other party isn't.
In this reality, the Democrats haven't always been correct, for sure, but the Republicans have always been wrong.

Did you read this before you hit "Post"?

LOL!!!!!!

 

[LibocalypseNow]

It's pretty hard to fathom how the Socialists/Progressives could be promoting more borrowing. Haven't they learned anything? This is just a bad idea. The Government needs to step back and get the h*ll out of the way. They're only causing more problems at this point. And for God's sake,quit passing stupid & unnecessary taxes like 'Indoor Tanning' taxes. Want to help small businesses? Stop with the stupid taxes. Borrowing more is definitely not the answer.

 

[editec]

Who would want to borrow money when they don't see their business as a viable ongoing entity? No one. It's basic microeconomic theory. Until they see economic growth as a reality, they will not be willing to take on more risk to continue their business.

And here we have the snake eating its own tail. Businesses may well hold off hiring and expanding until demand comes back. Demand won't come back until someone starts buying more. If we rule out direct government purchases to fill that gap, we turn to private households. But then we either need higher employment levels (which is the problem we're aiming to solve here in the first place) or we need money in the pockets of consumers through other mechanisms. We could do income tax cuts for the majority of households but that was done through the stimulus bill and we knew going in that wouldn't be nearly as stimulative as other mechanisms. We could fund aid that's known to be highly stimulative like unemployment benefits and food stamps but that gets tricky when the perception is growing that taking money out of the economy is the best way to get demand back.

So we've got a conundrum: small business are having trouble getting credit to expand and hire, and since so few businesses are expanding and hiring there isn't enough consumer demand for their products anyway. Chicken or egg?

Also, 42% of businesses used earnings to meet their capital needs, while 43% used bank loans. This is a GOOD thing. This means that as many small businesses didn't need bank loans as did.

It also suggests many businesses are treading water. NSBA's diagnosis isn't that small businesses are relying less on credit because they don't want it but rather because they can't get it:

Although lower demand for loans from small-business owners who are typically hesitant to take on additional debt in a distressed economy may be a part of the equation, the decrease in loans is more likely related to the terms and availability of such loans. Many banks appear unable or unwilling to lend affordable capital to any small businesses that doesn’t meet their extremely high definition of a “creditworthy” small business.
​

Your analysis is crap.

Okay now we're going to see Cru dismantle all that crappy analysis, I'll bet.

Everyone knows Obama wanted to destroy American business and supplant it with useless New Deal Progressive devaststion.

Oh, everyone KNOWS?

Well. who can refute that kind of authoritative analysis?

Progressives have done a fine job of delivering the hurt these two years.

Deep.

People started hunkering down when the Marxist was elected and we're just waiting for Pelosi to lose the gavel, then for Obama to get booted.

Not quite.

People start hunkering down when the stock market crashed like the titantic.

But hey, let's not allow history to get in the way of a sound anyalysis like you just gave us, shall we?

Nice post Greenbeard.

What a shame it's pearls before swine.

 

[rdean]

The mid-year economic report released on Wednesday by the National Small Business Association disagrees with you:

NSBA has been asking small-business owners if their business had been impacted by the credit crunch since early 2008. In February 2008, 55 percent responded that it had. In August 2008 that number jumped to 67 percent, and continued to rise to 69 percent in December 2008 and hit a high of 80 percent in July 2009. Despite a slight easing in December 2009 down to 78 percent, the number today is back up at its highest point. Eighty percent—four out of five—of small business owners report that their company has been impacted by the credit crunch.

The availability of capital is a critical component to business growth and job creation for small businesses. Since 1993, when NSBA began asking these questions, there has been a direct correlation between access to capital and job growth—when capital flows more freely, small businesses add new jobs.

Among small-business owners for whom capital availability has been a problem, 44 percent state that they have been unable to grow or expand the business, and 20 percent state that they have been forced to reduce their number of employees. Perhaps even more worrisome is the growth in small businesses that report they are unable to increase inventory to meet demand—up from seven percent in December 2009 to 12 percent today. This means that, although growth opportunities exist for these businesses, they are being held back by a lack of capital.​

It's pretty obvious that conservative lenders are holding back hoping to hurt Obama.

They had an orgy of deregulation under the Republicans and were able to squeeze trillions out of the American Middle Class. They think if they can get Republicans back into to office, they can "finish the job".

They don't seem to understand a strong and financially sound Middle Class is "good for business". All they know is "Get it while you can".

You are a blind partisan, "deeno".

I guess when it comes to the welfare of the Middle Class, I'm blind. Not Republicans. They see the middle class very clear.

 

[rdean]

In the black and white world of the right, one party is always correct and the other party isn't.
In this reality, the Democrats haven't always been correct, for sure, but the Republicans have always been wrong.

Did you read this before you hit "Post"?

LOL!!!!!!

There was another thread called: "List greatest conservative accomplishments last 20 years":"

And after hundreds of replies, the grand total of Republicans accomplishments were "ZERO".

But there were some. They gave Bin Laden a 9 year head start. They brought down the economy. The deregulated OSHA and the EPA leading to mine and oil disasters. They helped their corporate masters move American Jobs overseas and they turned Iraq into Iran.

The problem is they don't want to be associated with any of these "accomplishments".

 

[LibocalypseNow]

At least the GOP is getting it anyway. Better late than never i guess. The Democrats are still completely lost though. More borrowing will only lead to more problems in the end. The time of extravagant Bailouts is over. It's time to get back to fiscal sanity. Just don't pass those stupid & unnecessary taxes like 'Indoor Tanning' taxes and small businesses will prosper. The Democrats just don't get it and that's why it's time to show them the door. Make 2010 count people.

 

[asterism]

So the point is this: if the government wants to put money into the economy, it needs to put it in the right place. In this case, to the banks is NOT the right place. It needs go to to the consumers.

The reason behind this bill is to give the government more power to pick the winners and losers. It's the Chicago way....

 

[CrusaderFrank]

It's pretty hard to fathom how the Socialists/Progressives could be promoting more borrowing. Haven't they learned anything? This is just a bad idea. The Government needs to step back and get the h*ll out of the way. They're only causing more problems at this point. And for God's sake,quit passing stupid & unnecessary taxes like 'Indoor Tanning' taxes. Want to help small businesses? Stop with the stupid taxes. Borrowing more is definitely not the answer.

Once you realize they want to destroy the USA, then it's fairly easy to see why they operate they way they do.

Ideally, they want take over as much of the private sector as humanly possible while burying us under a mound of debt in the process.

They rigged the game so that the Federal government is the only mortgagee (Fannie Freddie and FHA control 100% of the market) and the banks are being strangled by Geither's Stress tests

I met with a state Housing Finance Agency and asked if they would issue floating rate bonds to finance a project. They said that they had just put of a RFP to 61 institutions and NONE of them NOT A ONE of them was interested in providing the remarketing guarantee to allow the state HFA to issue the bonds.

Obama and the Dems are strangling the US economy; it's intentional, it's malicious and there will be consequences.

 

[CrusaderFrank]

In the black and white world of the right, one party is always correct and the other party isn't.
In this reality, the Democrats haven't always been correct, for sure, but the Republicans have always been wrong.

Did you read this before you hit "Post"?

LOL!!!!!!

There was another thread called: "List greatest conservative accomplishments last 20 years":"

And after hundreds of replies, the grand total of Republicans accomplishments were "ZERO".

But there were some. They gave Bin Laden a 9 year head start. They brought down the economy. The deregulated OSHA and the EPA leading to mine and oil disasters. They helped their corporate masters move American Jobs overseas and they turned Iraq into Iran.

The problem is they don't want to be associated with any of these "accomplishments".

94% of Rdeans posts are a waste of electrons.

I have reviewed this post and find it to be in the 94% with a 99.99999% accuracy

 

[CrusaderFrank]

And here we have the snake eating its own tail. Businesses may well hold off hiring and expanding until demand comes back. Demand won't come back until someone starts buying more. If we rule out direct government purchases to fill that gap, we turn to private households. But then we either need higher employment levels (which is the problem we're aiming to solve here in the first place) or we need money in the pockets of consumers through other mechanisms. We could do income tax cuts for the majority of households but that was done through the stimulus bill and we knew going in that wouldn't be nearly as stimulative as other mechanisms. We could fund aid that's known to be highly stimulative like unemployment benefits and food stamps but that gets tricky when the perception is growing that taking money out of the economy is the best way to get demand back.

So we've got a conundrum: small business are having trouble getting credit to expand and hire, and since so few businesses are expanding and hiring there isn't enough consumer demand for their products anyway. Chicken or egg?



It also suggests many businesses are treading water. NSBA's diagnosis isn't that small businesses are relying less on credit because they don't want it but rather because they can't get it:

Although lower demand for loans from small-business owners who are typically hesitant to take on additional debt in a distressed economy may be a part of the equation, the decrease in loans is more likely related to the terms and availability of such loans. Many banks appear unable or unwilling to lend affordable capital to any small businesses that doesn’t meet their extremely high definition of a “creditworthy” small business.
​

Okay now we're going to see Cru dismantle all that crappy analysis, I'll bet.



Oh, everyone KNOWS?

Well. who can refute that kind of authoritative analysis?




Deep.

People started hunkering down when the Marxist was elected and we're just waiting for Pelosi to lose the gavel, then for Obama to get booted.

Not quite.

People start hunkering down when the stock market crashed like the titantic.

But hey, let's not allow history to get in the way of a sound anyalysis like you just gave us, shall we?

Nice post Greenbeard.

What a shame it's pearls before swine.

The Capital Markets screeched in horror when Pelosi picked up the gavel and then the markets tanked when the Marxist was elected.

You two are knuckleheads so I won't waste more time answering you.